Here's a list of what i think the PS3 needs to beat the 360's appeal:

1. A better home menu: Let's face it, although easy to use the PS3's XMB isn't that attractive to the eye. The 360's Live Experience is much more in-depth with a page for everything you can select instead of small icons. And the avatars (even though obviously a rip-off from the Wii's Mii) are fun. So maybe keep the idea of the XMB but more opeions than just small icons?

2. In-game chat: We all know that this is the big one what a lot of people have been waiting for, the ability to chat with your friends from any game you are playing and invite them all to your match to check out this awesome glitch you just found. In the last update we got in-game text chat (WTF) although it was suspected that Sony would work their way up to voice chat. Options such as send a voice message on the 360 make it much easier to communicate with friends. Also the in-game dashboard the 360 has, in my opinion, is a lot better than having a full in-game menu like the PS3. It means a lot easier access to your music and friends and i think should be an option for the PS3 user.

3. Movie download ability: Yes i know the US already has this but it would be nice to release it in the UK and EU.

4. Home: This was really anticipated amongst the masses but was really a dissapointment. It was released with hardly anything in it except from a defective bowling game and a bubble machine. Home really needs the features it was expected such as the trophy room which looked amazing in the video. And although Home is free, there is a lot you have to buy in it to get the full experience.

These are just my opinions on what the PS3 really needs so if anyone has any other ideas please post here.

You dont have to use home. I just see it as brilliant as it saves me the cost of PSN for every year im going to have a PS3. Surly thats a good thing. Voice chat i agree completly. I would like Home to be improved but its free so you cant really complain. I have no complaints about the layout.

Price cute???

Totally agree with the middle two, totally disagree with the outside two.

The PS3 XMB interface is sleek and very professional, and themes can be downloaded from anywhere for customization. Try a Modus theme, they are cool.

Yes, cross game chat is needed badly, I expect this in update 3.0

Again I agree, why haven't us Europeans got this option yet?

Home......you either like it or you don't. I think its.....'good'

I agree with 2 and 3, that's all it really needs. The XMB is fine and Home is improving fast from what I hear, although I haven't used it in some time.

I dunno blades verse XMB....I sorry I really have no complaints about the layout of the XMB. I think it is really "elegant" to say the least, Xbox experience layout is not my cup of tea. I actually keep it on the old blade style layout because of it. I live in the U.S. so the video store issue obviously does not effect me. And ever sense I canceled my live subscription, I have picked up more games with the extra income. So I am good with my set up currently (my ps3 is hooked up to the flat panel in the livingroom, wii is in the bedroom in a box, and 360 is in my guest bedroom hooked up to an small flat panel).

I prefer the XMB to 360's dash, in-game chat would be cool but not a necessity for me, i live in the US but don't download movies on my PS3, and I haven't been on Home since February. I have been on Warhawk and COD4 though which makes me thankful for PSN being free so I am never worrying about wasting a subscription when I go a few weeks without playing anything online. I went home this weekend for Memorial Day and my brother has a 360 there. While playing it I realized how glad I am I got rid of my 360 for a PS3. I can't stand how loud the 360 is, it's just so obvious that the PS3 is a much more quality piece of electronics.  I sold my Wii too and kind of want it back for Smash and Galaxy, but there isn't anything that makes me want a 360 again.

More games maybe?

The PS3 is not the Xbox they are both gaming consoles but they cant be compared this way. If you want a PS3 buy it these features will come soon... If you want to spend less money for a DVD player that downloads netflix movies and has chat so you can talk to your pals oh and pay for online gaming then buy an XBOX... If you want the future of gaming for consoles purchase a PS3 already.

I want #2. That's will be good for me